Daily Current Affairs - 01-09-2026

Economy News

FY27 Fiscal Deficit Reaches 26.8% of Full-Year Target

The Centre’s fiscal deficit for 2026-27 (FY27) stood at 26.8% of the full-year target at the end of July 2026, according to data released by the Controller General of Accounts (CGA). The fiscal deficit during April–July 2026 was ₹4,55,144 crore. The fiscal deficit target for 2026-27 has been fixed at 4.3% of GDP, equivalent to ₹16.96 lakh crore. The Centre’s net tax revenue up to July was about ₹8.45 lakh crore, accounting for 29.5% of the corresponding Budget Estimates (BE) for 2026-27. Total expenditure during the first four months of FY27 was about ₹17.62 lakh crore, or 32.9% of BE. During the period, the Centre transferred ₹3,72,354 crore to State governments as devolution of their share of taxes, which was ₹56,190 crore lower than the corresponding period of the previous year.

India’s GDP Growth at 7.8% in Q1 FY 2026-27

India’s Gross Domestic Product (GDP) growth stood at 7.8% in the April–June 2026 quarter (Q1 FY 2026-27), compared with 6.9% in Q1 of the previous year and 8.6% in the January–March 2026 quarter. Nominal GDP grew by 10.3%, while Real Gross Value Added (GVA) grew by 8.2%. Gross Fixed Capital Formation (GFCF) increased to 34.3% of nominal GDP, compared with 31.4% in the previous year. In sectoral performance, manufacturing recorded 9.2% growth, services recorded 10% growth, with financial, real estate and professional services growing by 12.1%, construction by 7.7%, and electricity, gas and water supply by 8.9%. Agriculture grew by 3.6%, while mining and quarrying contracted by 2.4%.

Blue Revolution and India’s Fisheries Sector

Vice President C.P. Radhakrishnan participated in a fisheries department event held at Agatti, Lakshadweep, on August 31. Lakshadweep accounts for one-sixth of India’s Exclusive Economic Zone (EEZ). India ranks second in the world in fish production, with a 8% share of global fish production, and the country’s fish production is 195 lakh tonnes. India exports seafood products to 120 countries. Seafood exports were worth over ₹73,000 crore in the current financial year, with Lakshadweep contributing one lakh tonnes, including 94,000 tonnes of tuna. According to Union Fisheries Minister Rajiv Ranjan Singh, fish exports increased from 95.7 lakh tonnes in 2013-14 to 197.75 lakh tonnes in 2024-25, an increase of 105%, while the value of fish exports increased from ₹30,213 crore in 2013-14 to ₹62,408 crore in 2024-25 and ₹73,890 crore in 2025-26. Union Minister of State for Fisheries S.P. Singh Baghel and Administrator of Lakshadweep Praful Patel also participated in the event.

National News

Navy Commissions INS Nipun for Advanced Operations

The Indian Navy commissioned INS Nipun on Monday at the Naval Dockyard in Mumbai. It is the second Diving Support Vessel (DSV) of the Nistar class and will significantly enhance the Navy’s capabilities in deep-sea diving, underwater intervention, and submarine rescue. Chief of the Naval Staff Admiral Krishna Swaminathan presided over the ceremony. According to the Ministry of Defence, INS Nipun is a specialist platform built to undertake complex underwater operations. The vessel was indigenously designed and built by HSL in Visakhapatnam. Its induction marks another step towards self-reliance in defence shipbuilding.

LPG Production Increased by 30%

Indian Oil Corporation (IOC) has increased its domestic LPG production by nearly 30% amid disruptions to LPG imports from Gulf countries through the Strait of Hormuz. India has increased domestic gas production and diversified gas imports by sourcing from other countries to maintain domestic LPG supply. At the 67th Annual General Meeting of Indian Oil Corporation held in New Delhi, IOC Chairman Arvinder Singh Sahney stated that the company’s oil refineries were operating at more than 100% capacity and crude oil was being imported through alternative suppliers amid disruptions in global energy markets.

‘Semicon 2.0’ Scheme with ₹1.27 Lakh Crore Outlay

The Central Government notified the second phase of the India Semiconductor Mission, known as ‘Semicon 2.0’, on August 31, 2026, with an outlay of ₹1,27,500 crore to promote semiconductor manufacturing, mobile phone production and exports. The scheme has six focus areas: chip design; semiconductor equipment and raw materials; manufacturing facilities; advanced packaging and testing; research and development (R&D); and skill development. Under the scheme, 40% financial support will be provided for establishing silicon manufacturing units, while 35% support will be provided for LCD, OLED, Micro LED and compound semiconductor manufacturing units. For packaging, 35% of capital expenditure will be supported for advanced packaging and 25% incentive will be provided for legacy packaging. S. Krishnan, Secretary, Ministry of Electronics and Information Technology, stated that chip-design startups must be owned by Indians or Non-Resident Indians (NRIs) and will receive financial assistance through subsidies and equity investment models. The scheme aims to achieve self-reliance and develop a globally competitive semiconductor industry. The Union Cabinet approved the scheme on July 15, 2026. Under Phase 1, the government had approved 12 semiconductor projects across 6 states, including projects by Micron, Kaynes Semicon and CG Semi.

Science and Technology News

India Semiconductor Mission 2.0 Notified with ₹1.28 Lakh-Crore Outlay

The Ministry of Electronics and Information Technology notified the second phase of the India Semiconductor Mission (ISM 2.0) with an outlay of ₹1.28 lakh crore to support the electronics manufacturing sector. ISM 2.0 has six pillars: chip design, with focus on strategically important industries and chips owned by Indians or OCI cardholders; machines and materials, covering capital equipment manufacturing and chemicals and gases required for electronics manufacturing; setting up semiconductor fabs, for which the Central Government will provide capital subsidies of up to 40%; packaging and testing facilities, which will also receive capital subsidies; research and development (R&D), with subsidies of up to 75% of project cost; and talent development, with support at the same level as R&D. Under ISM 1.0, chip projects received a 50% capital subsidy, while this was reduced to 40% under Phase 2 due to increased participation by global players and additional support from States.

Tamil Nadu News

Major Power, Industrial and Dairy Sector Announcements in Tamil Nadu

Tamil Nadu Chief Minister C. Joseph Vijay announced several measures in the State Assembly covering the power, industrial and dairy sectors. A 1,600 MW supercritical thermal power station will be established in Thoothukudi at an estimated cost of ₹20,800 crore under the PPP model, replacing five existing 210 MW units with two 800 MW units. The Tamil Nadu Transmission Improvement Scheme will be implemented at a cost of ₹33,066 crore, involving 196 new substations and 15,000 km of transmission lines. A ₹1,762-crore Chennai power distribution improvement project will include 36 new 33/11 kV substations and replacement of damaged cables and pillar boxes. The milk procurement price has been increased by ₹3 per litre, raising the rate to ₹44 per litre through primary milk producers’ cooperative societies. A Semiconductor and Electronics Manufacturing Park will be established at Maduramangalam in Kancheepuram district by SIPCOT at a cost of ₹175 crore, with an expected investment of ₹2,000 crore and employment for 5,000 people. A Coimbatore FinTech Hub will be established through TIDCO under the PPP model at a cost of ₹400 crore, while a Multi-Modal Logistics Hub will be established in the Tiruchi region based on a TIDCO project report.

Retirement Home for Senior Citizens

A retirement residential home for senior citizens with medical, care and entertainment facilities will be established under the Public-Private Partnership (PPP) model at a cost of ₹14.50 crore. Buildings for 300 child centres in urban areas will be constructed at a cost of ₹51 crore, while child protection and care facilities in Anganwadi centres will be upgraded at ₹12.96 crore. To prevent anaemia, additional nutritious food will be provided to students of 5,502 government and government-aided high schools in 12 districts at a cost of ₹38 crore. Kitchen buildings for 123 nutritious meal centres in urban schools will be constructed at ₹11.11 crore. Social coordination services for preventing drug use and supporting rehabilitation among children and youth will be implemented at ₹3.80 crore. POCSO Portal 2.0 will be implemented as an integrated multi-departmental system to facilitate speedy justice and compensation for children affected by sexual offences. Physiotherapy and palliative care services for residents of old age homes will be provided at a cost of ₹5.5 crore. An integrated single-window portal for welfare schemes and services for transgender persons will be created at ₹1 lakh, and transgender counselling services will be established in 7 districts.

Semiconductor Park in Kancheepuram and FinTech Hub in Coimbatore: CM Announcements

On August 31, Chief Minister C. Joseph Vijay made several industrial announcements in the Tamil Nadu Legislative Assembly under Rule 110. A Semiconductor and Electronics Manufacturing Park will be established at Maduramangalam in Kancheepuram district through the State Industries Promotion Corporation of Tamil Nadu (SIPCOT) at a cost of ₹175 crore. The park will include world-class Research and Development (R&D) facilities to facilitate the establishment of new semiconductor manufacturing units, with the objective of increasing the State’s share in the semiconductor sector and attracting large-scale investments. The project is expected to attract ₹2,000 crore investment and create direct and indirect employment for 5,000 people. A Coimbatore FinTech Hub (Digital Finance Hub) will be established through the Tamil Nadu Industrial Development Corporation (TIDCO) under the Public-Private Partnership (PPP) model at a cost of ₹400 crore. It will include world-class office spaces, startups, modern laboratories, training and skill development facilities to promote technological advancement in the financial sector and attract global investments. A Multi-Modal Logistics Hub will be established in the Tiruchi region as part of the 2026-2027 Budget announcement to establish logistics parks and dry ports for attracting investments. The project is proposed considering the concentration of manufacturing industries and Micro, Small and Medium Enterprises (MSMEs) in Tiruchi and surrounding districts, and TIDCO has prepared a project report for the hub.

Food Allowance for Sanitation Workers in Place of Breakfast

In Chennai, School Education Minister Rajmohan announced that sanitation workers would be provided a food allowance in lieu of breakfast. Restrooms with changing facilities for sanitation workers have been established at 93 locations, while 107 additional locations have been identified for arrangements by September 15. Workers in Zones 4, 7 and 8 will be provided with required equipment, nearly 10.69 lakh face masks at one mask per day and 1,18,899 pairs of gloves at two pairs per 15 days. A proposal for providing a food allowance instead of breakfast has been prepared and recommended for government approval. The existing daily wage of sanitation workers is ₹762, while ₹832 has been fixed by the District Collector, and reconsideration will be made to provide the revised amount. Raincoats will also be provided to sanitation workers.